Belmont-based property developer and construction company Diploma Group plans to build a $35 million, nine-storey residential apartment building in Scarborough, after buying two adjoining blocks of land along West Coast Highway.
In a statement to the ASX on Friday afternoon, Diploma said it was putting documents together to lodge a formal application with the Metropolitan Redevelopment Authority for development approval to build 56 apartments, plus 350 square metres of commercial space, on the 1,301sqm block of land.
The land is on the corner of West Coast Highway and Brighton Road.
Diploma said the building would have ocean views.
Settlement is expected in February next year, while marketing will commence in mid 2015.
The MRA in July took control of the planning for the $60 million redevelopment of Scarborough Beach from the City of Stirling.
The project was initially announced in September last year, and will focus on an area spanning 1.6 kilometres along the beachfront and 800 metres east along Scarborough Beach Road.
The state government is providing $30 million towards the project, while the City of Stirling will put in $27.4 million.
Diploma’s proposed apartment building will be located within the redevelopment project’s boundary area.
Diploma recorded a 194 per cent lift in full-year profit to $4.7 million in August, a significant improvement on its performance in the 2012-13 financial year, in which it slumped to a $15.5 million net loss.
The company said its construction division had completed seven projects in 2013-14, with a combined contract value of $267 million.
It included the One on Aberdeen joint venture with the Department of Housing, with all 161 apartments in the $73 million project having been pre-sold.
Diploma also sold all of the apartments at its $32 million Abode joint venture with the Department of Housing in West Perth, which is set to be completed by February.
In April, Diploma secured three contracts worth $66 million for the construction of residential and commercial developments in Perth.
One of the contracts included a binding heads of agreement to build 109 apartments at the Marina Edge development in Port Coogee for a subsidiary of local developer TRG Properties, in a deal worth $38 million.
That’s on top of a $35 million contract it was given by TRG for the Ocean Edge Development in the Port Coogee precinct.
Diploma’s share price was 2.56 per cent higher at 4 cents per share, at 10:45am.
